Essay on Compensation and Benefits Strategies Recommendations

1155 Words Sep 17th, 2013 5 Pages
Compensation and Benefits Strategies Recommendation
HRM 531

Compensation and Benefits Strategies Recommendation

Providing a first-rate benefits package for employees can be an important part of the recruitment and retention puzzle, especially for small businesses. Benefits matter. Small businesses like the limo service Bradley Stonefield is establishing has many challenges. Nowadays, companies are running on leaner budgets. There is competition in attracting good employees between companies. The most popular cafeteria plans that may have multiple options for health coverage, vision coverage and other benefits are what many employees desired. Employees have the ability to use a fixed amount allotted to custom-design a
…show more content…
Salary: Wages vary depending upon the number of customers and length of time driven.” Our team would recommend starting drivers at $10 per hour, just little under Texas’s average pay rate for limousine drivers. The pay rate is tied only to hours worked, regardless of number of passengers. Pay rate progression could be established based on quarterly performance assessments. This evaluation system could encompass the following elements: customer satisfaction, safety, commitment and collaboration. Based on these elements and their measures, the employee could be ranked as top performer or improvement needed, and the pay rate adjusted based on these measures. The Estimated Plan is calculated using the following assumptions: • 15 vehicle fleet • $6000 maintenance cost per vehicle • $22,620 average annual income for 15 drivers, with average 5% increase in payroll annually. • Other payroll is calculated using 10 part-time employees with 5 hours a day, at minimum wage $7.25 per hour, with estimated 250 working days per year. No annual increase included in estimates. • Fuel costs at $10,000 per vehicle per year with no estimated increase. Estimated Plan [pic] Benefits plan strategies. Because of limitation of potential net revenue is only an estimate, therefore a tentative benefits package is draft with flexibility for adjustment as Mr.

Related Documents